10 stocks surge 100-250% in FY24, but still below 5-year average P/E
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about 1 year ago
In the fiscal year FY24, Indian equities have given strong performance, with the benchmark index Sensex experiencing a substantial 12% surge. Amid this bullish trend, many stocks have exhibited notable upward movements, effectively doubling investor wealth. However, in terms of valuation, a majority of these stocks appear to be somewhat overvalued.To identify undervalued stocks, ETMarkets has pinpointed 10 stocks that have achieved multi-bagger status in FY24, while still trading below their respective five-year average price-to-earnings (P/E) ratios. Furthermore, a significant portion of these stocks is trading below the P/E multiples of their respective industries. The P/E ratio serves as the most commonly utilized valuation metric and plays a pivotal role in the stock screening process.When a stock is trading below its five-year average P/E multiple, it suggests that the stock may be undervalued. It's essential to note that this analysis only considered companies that have consistently reported profits over the past five fiscal years and currently possess a market capitalization exceeding Rs 500 crore (Data Source: ACE Equity).
Economic Times